Efficiency Of Banking Profits In Indonesia

The profitability of commercial banks during 2010-2016 tends to increase. The increase came from credit interest income of credit (Financial Stability Review-FSR, March 2017). But the increase in profit is not matched by banking efficiency based on the ratio of Operational Costs to Operating Income. Based on the results of the quadrant analysis concluded that: a.) Commercial banks in the same core capital group have different profit efficiency. b.) Banks that have the same bank size have different profit efficiency values. c.) Banks that have a high profit level are not necessarily high profit efficiency values and vice versa.